NEW DELHI - India's largest drugmaker by market capitalisation Sun Pharma will buy out Japan's Daiichi-controlled Ranbaxy Laboratories for $4 billion in an all-share deal, the two companies said April 7. The combined entity will create the world's fifth largest speciality generic pharma company. According to a joint statement issued by the two companies,

Sun Pharma will acquire 100 percent of Ranbaxy in an all-stock transaction. Ranbaxy is 63.4 percent owned by Japan's Daiichi Sankyo. Under these agreements, shareholders of Ranbaxy, India's biggest drugmaker by sales, will receive 0.8 share of Sun Pharma for each share of Ranbaxy. “Ranbaxy has a significant presence in the Indian pharma market and in the US where it offers a broad portfolio of ANDAs and first-to-file opportunities. In high-growth emerging markets, it provides a strong platform which is highly complementary to Sun Pharma’s strengths,” said Dilip Shanghvi, managing director of Sun Pharma. “We see tremendous growth opportunities and are excited with the prospects to create lasting value for both our shareholders through a successful combination of our franchises,” Shanghvi added. The combination of Sun Pharma and Ranbaxy creates the fifth-largest speciality generics company in the world and the largest pharmaceutical company in India. The combined entity will have operations in 65 countries, 47 manufacturing facilities across five continents, and a significant platform of specialty and generic products marketed globally, including 629 abbreviated new drug applications (ANDAs). “We believe this transaction brings significant value to all Ranbaxy shareholders. Sun Pharma has a proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets,” said Arun Sahwney, managing director and chief executive officer of Ranbaxy. “We are confident that Sun Pharma is the ideal partner to help us realize our full potential and are excited to participate in future value creation opportunities,” said Sahwney. (IANS)